Turkish Labor Law
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As is known, Turkey’s monthly gross minimum wage is increased from 2.029,50 to 2.558,40 with a monthly 26% wage hike (from net 1.603,12 to 2.020,91). The Turkish Government, as it has been the case for the last three years, decided to continue supporting employers in 2019, in an effort to reduce the increased employment cost.
The Provisional Article 78 is added to Law No 5510 by the Law No 7162/10 issued in the Official Gazette on 30 January 2019.
Minimum wage support will be applied in comparison with same month of the previous year. The support amount wil be set off from the employer’s Premium debts of the related month in SSI’s platform.
Employers will be receiving daily 3,36 TRY premium refund throughout 2019 for each worker whose wage (earnings subject to premium) was notified under daily gross 102,00 TRY (monthly gross 3.060,00 TRY) in 2018.
The daily base amount for unionized workplaces will be 203,00 TRY (monthly 6.090,00 TRY), and 271 TRY for underground mining companies.
Employers will benefit from the support for the total declared premium covered days of the insured, who are employed in the establishments registered (based on Law No. 5510) within 2019.
You can see the daily earning basis and the daily support amount to be multiplied by Total Premium Covered Days in the table below.
| Workplace | Average Number of Employees | Daily Earning Base TRY | Daily support Amount TRY (Amount to be multiplied by Total Premium Covered Days) |
| Non-Unionized Workplaces | Below 500 | 102 | 5 |
| Non-Unionized Workplaces | Over 500 | 102 | 3,36 |
| *Unionized Workplaces | Below 500 | 203 | 5 |
| Unionized Workplaces | Over 500 | 203 | 3,36 |
| Underground Mining | Below 500 | 271 | 5 |
| Underground Mining | Over 500 | 271 | 3,36 |
“A Unionized Workplace” is a workplace in which collective agreement provisions are applied.
SAMPLE CALCULATION
Workplace declared 5 employees whose daily gross earnings were under 102,00 TRY in January 2018.
Monthly premium paid days: 5*30=150 days.
Daily support amount: 5 TRY (Because average number is below 500),
Total amount to be set off from the employer’s SSI premium debts in January 2019: 150*5=750 TRY.
WHO CANNOT BENEFIT FROM THE SUPPORT?
Employers who;
– do not submit their monthly premium and service documents and do not pay the premiums in time,
– in the investigations and inspections performed by the officers authorized with audits and checks, are found not to have notified the employed personnel as insured or if the notified insured is not working virtually,
– did not pay the premium, administrative fine and delay penalty debts to Institution (SSI), cannot be benefiting from the above incentives
The amounts covered by Treasury will be collected back with delay fine and default interest from the establishments that are found to be dealing with fictitious transaction in order to benefit from incentives.
